Publication detail

The Elasticity of Electricity Demand and Carbon Emissions Reductions in the Residential Sector: Evidence from a Tariff Shift in Russia

Author(s): Salim Turdaliev BSc M.A.,
Type: IES Working Papers
Year: 2021
Number: 37
ISSN / ISBN:
Published in: IES Working Papers 37/2021
Publishing place: Prague
Keywords: residential electricity demand, transition economy, natural experiment, increasing block rates, attentiveness, CO2 emissions
JEL codes: Q41, Q48, L98, L94
Suggested Citation: Turdaliev S. (2021): " The Elasticity of Electricity Demand and Carbon Emissions Reductions in the Residential Sector: Evidence from a Tariff Shift in Russia " IES Working Papers 37/2021. IES FSV. Charles University.
Grants: GAUK 454120 The effect of non-linear tariff on energy demand and investment in electric durables in Transition Economies: Micro data estimation and natural experiment
Abstract: In this paper, I estimate the price elasticity of residential electricity demand using household-level panel data for Russia. The study takes advantage of the variation in tariffs across regions and over time, as well as the introduction of increasing block rate (IBR) tariff schemes in a number of regions. I show that in those regions consumers appear to be aware of the block cut-offs, even though the latter are household and dwelling-specific, to the point that there are a total of 35 different tier cut-offs. Based on these results, I estimate the price elasticity of electricity demand to be around -0.09. I also predict the associated changes in electricity consumption, CO2 emissions, and revenues if similar IBR policies are implemented countrywide.
Downloadable: wp_2021_37_turdaliev

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